DCM Shriram Ltd, which is into sugar, fertilisers, chemicals and seeds businesses, on Monday said its promoters have not pledged the company's equity shares and described the action of the NSE to include its shares under surveillance as "erroneous".
On April 3, the National Stock Exchange shortlisted five companies, including DCM Shriram, with higher levels of pledged shares by promoters for surveillance action.
The exchange will levy a minimum margin of 35 per cent on the respective shares, including on stocks in the derivatives segment.
Reacting to this development, DCM Shriram has said in a regulatory filing that the promoters have not pledged any of the company's shares.
"Over the last few months there have been some incorrect reports about high level of pledge on shareholdings by the promoters of DCM Shriram.
NSE also recently decided to include the shares of the company for surveillance due to high level of pledge.
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"We wish to clarify that the promoters have not pledged any of the shares of DCM Shriram Ltd," DCM Shriram said in a regulatory filing.
This was clarified to the exchanges vide letter dated November 12, 2019 and November 26, 2019.
"Further vide letters dated March 19, 2020, the company and the promoters advised the stock exchanges removal of other encumbrances on the shares. All the promoter shares are free of
pledge/encumbrances," it said.
"The reports and the actions of the NSE therefore are erroneous," the filing said, adding that the company has taken up with NSE to correct the position at the earliest.
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